Mortgage rates are at historical lows. Accordingly, mortgage refinances are expected to reach record levels and support the U.S. economy as household budgets improve. But rates are not the only thing you need to think about when considering refinancing or buying a home. The mortgage industry is incredibly competitive right now, so the cost of refinancing and closing costs can vary drastically. In some situations, they can even be free.
If you’re purchasing a home during the current climate, it may make sense to put down less than the traditional 20%. Depending on how long you plan to stay in the home, paying “points” for a lower rate may make sense. In today’s sellers’ market it’s important to work with a mortgage professional before you start your home buying search. The competition between buyers is high. Sometimes, an offer is made within hours and sellers want to see your financials quickly. When a seller is considering multiple offers, having this information at the ready can give you an extra advantage.
For example, when I was buying my home a few months ago, I lost multiple houses to more timely or more competitive offers. I learned through the process to come prepared with an offer and a letter from my mortgage broker. Having that documentation ready gave me a major edge over the competition when the sellers called my broker that night to confirm my finances before they accepted the offer.
It’s important to work with a mortgage professional that has experience, is fairly priced, and has access to the products that fit your situation. There’s no “one stop shop” in the mortgage business, which is why Marshall Financial has relationships with multiple professionals. We’ll be able to refer you to a professional within our network that’s the right choice for your unique situation. Additionally, we monitor our clients’ mortgages and real estate holdings to recognize opportunities to save money. If you’re ready to start working with a Marshall Financial CFP® professional, you can click here to get started.